An arbitration panel says Annuity and Life Re (Holdings) Ltd. may be able to move toward an arbitration hearing without supplying $30 million in pre-hearing security.
The panel has denied a request for the pre-hearing security from the other party involved in the proceedings, a unit of Transamerica Occidental Life Insurance Company, Los Angeles, “without prejudice,” according to Annuity and Life Re, Hamilton, Bermuda.
When an arbitration panel denies a request “without prejudice,” that means the party making the request can reformulate the request and submit it again.
In this case, the Transamerica Occidental unit “may refile the motion for reconsideration at a later date, if it can provide a more substantive record to support a ‘good cause’ basis to request interim security,” the arbitration panel says.
Annuity and Life Re began losing money a few years ago, and it ended up transferring most of its reinsurance business to other companies.
The reinsurer has been involved in arbitration proceedings with Transamerica Occidental Life, a unit of AEGON N.V., The Hague, Netherlands, in connection with a reinsurance deal that ran into problems.
Transamerica Occidental has asked the arbitrators to require Annuity and Life Re to provide $30 million in security before proceeding with arbitration, Annuity and Life Re said in a report filed with the U.S. Securities and Exchange Commission.
Annuity and Life Re has opposed the request, in part because providing $30 million in security would leave the company with just $2 million in unencumbered capital, the company said in the report.